Is there a point beyond which your house will not be repossessed?

DogTailRed2

My property is 210'000. I have 11000 left to pay.
As I'm currently unemployed there may come a time when savings are exhausted and I can't pay my mortgage (unlikely but looking at a worse case scenario). So would I be repossessed for such a small amount?

Annisele

If you completely ignored all of your lender's attempts to contact you, then yes they probably would repossess for £11,000. The costs incurred might well be disproportionate, but there would be enough equity in your house to cover those costs so it wouldn't be the lender's problem.

If you don't ignore them, then they might eventually repossess as an absolute last resort - but there are likely to be other options. For example, they might let you convert your mortgage to one where the interest rolls up and is paid off on your death (depending on your age, could be a very expensive option but would let you keep your house).

namzij

Annisele is right, you may get repossed even for a small amount. What are your plans for the future, are you planning to sell the property?

pento

you should take professional advice before taking any actions.

just a thought, as your property is mainly your equity now you could remortgage with another provider for say £30,000. Use this money to pay off the £11,000. Then have £19,000 to help with living expenses and a few months mortgage payments until you can secure a new job.

it's not an ideal solution as you'll be increasing your debt level. but in the short term it could help you in a tough situation.

poppy_f1

pento wrote: »

you should take professional advice before taking any actions.

just a thought, as your property is mainly your equity now you could remortgage with another provider for say £30,000. Use this money to pay off the £11,000. Then have £19,000 to help with living expenses and a few months mortgage payments until you can secure a new job.

it's not an ideal solution as you'll be increasing your debt level. but in the short term it could help you in a tough situation.

but surely with the OP not working it wont be that easy to remortgage

E3N

Could he not just apply for an equity release!

The amount is very small indeed.